Local MP Urges Wigan Residents to Use Credit Unions Instead of Loan Sharks

Friday 26 January 2024

Makerfield MP, Yvonne Fovargue Wigan is urging communities to turn to credit unions in the cost-of-living crisis, as more than 94,000 people are revealed to be in financially vulnerable circumstances.

Data from financial inclusion body Fair4All Finance shows 94,376 adults in Wigan are in financially vulnerable circumstances.

Nationally, as many as 1.1m Brits may be in the hands of illegal lenders and a fifth of adults had less than £100 in savings before the current financial crisis.

Yvonne Fovargue said: “With so many people finding it incredibly tough right now to put food on the table and keep their home warm and lit, I am seriously concerned that scammers and loan sharks will take advantage of their desperation.

“Being able to find the right kind of financial support is critical, but people are finding that there are fewer options than ever, particularly if they’ve been turned down by financial providers previously.

“Community lenders are potential lifelines to many; they do amazing work building households’ financial resilience, helping them to ensure that unexpected bills or extra expenses do not plunge them into crisis. Credit unions have been doing this for decades, but sadly it can be easy to overlook them, because they don’t have the marketing budgets of more expensive lenders.”

The call comes as Fair4All Finance supports the community finance sector as it comes together for to raise awareness of credit unions and community lenders.

Thousands of people across Greater Manchester are supported by credit unions to cover essential or unexpected expenses, as well as supporting members to put what money they can aside as savings.

Matt Bland, Chief Executive Officer at The Co-op Credit Union, said: “We have thousands of members across Greater Manchester and want everyone in the area to feel reassured in knowing that organisations like us are here, ready to support more of you to take control of your finances and navigate these tricky times.”